The Unsparing storm that hit Houston is considered as one of the costliest natural disaster, with tens of billions in lost economy and property damages across the region.
The Houston metropolitan area, the nation’s fifth largest by population, is responsible for about 3 percent of nation’s GDP. Houston has experienced many hurricanes but this is out of scale of anything the city has seen.
Chuck Watson, Who studies the economical impact of natural disaster, says that the cost to the economy from the floods is likely to be $30 billions.
“If Harvey were just a hurricane, it would have only caused $4 or $5 billion worth of damage. As a tropical storm phase it’s producing five times more damage” Watson says.
About a Third of Houston’s Economy is directly tied to oil and gas industry, Texas accounts for half of the petroleum and gas exports along with a fifth of chemical exports.
Mr.Dye said that, The Texas Gulf Coast was home to 30% of the nation’s refining Capacity, with about half of that now shuttered by the storm. He also said that, “It may take weeks for refineries to repair and replace damaged equipment, Port facilities have also been damaged, and this may result in export bottle neck”.
It’s not clear how many houses have been damaged yet, but right now the estimation of cost in repairing residential properties will be around $12 billions. The economy will make for its loss once the flood water recede, but the physical damages of the city are harder to recover.
But the economists, say that the region is likely to recover quickly and may even experience a bump in rebuilding.